The Influence of Financial Performance and Capital Structure on Company Value With Company Size as Moderating Variable (Empirical Study on Insurance Subsector Financial Services Companies listed on the Indonesia Stock Exchange for the Period 2019 - 2022)

Abstract

The purpose of this research was to examine and evaluate the effects of financial performance and capital structure on the value of a company, with the size of the company acting as a moderating factor. A quantitative methodology, grounded in a correlational design, was employed for this study. The research utilized secondary data obtained from the Indonesia Stock Exchange (IDX), focusing on annual reports from entities within the insurance sub-sector for the period of 2019 to 2022. The dataset included a compilation of 40 entries. The process of sample selection was carried out through a purposive sampling strategy. For data analysis, a moderation regression analysis technique was utilized, with the analysis being conducted via the SPSS software. The investigation reveals that within the insurance sub-sector of financial services, the collective variables of Financial Performance, Capital Structure, and Company Size significantly impact the value of corporations listed on the Indonesia Stock Exchange from 2019 to 2022. When examined individually, Financial Performance and Company Size fail to affect Company Value significantly, nor does Company Size act as an effective moderating factor for the Financial Performance and Capital Structure variables. In contrast, Capital Structure is recognized as exerting a considerable influence on the Company Value of entities within the same sub-sector of financial services, as listed on the Indonesia Stock Exchange over the timeframe above. Keywords: Financial Performance, Capital Structure, Company Value, Company Size.